Kellach and Driskoll are at Kendric's when Moyra breaks in and interrupts them. Her mother has been arrested for theft. When they go to see their Dad about it, he seems to react strangely to them, and doesn't want to discuss the situation.
It turns out that the amulet belonged to a former prisoner called Lexos, the same Lexos who was a magistrate in the town but seemed to go crazy and tried to kill the Knights and Zendric as well. For his crimes, he was imprisoned, but now Toric has set him free. While not agreeing with their father's decision, they do get to visit Moyra's mother in jail, and she says she found the amulet (which is silver with some sort of big bird on it) while digging in the garden. She liked it and stuck it in her pocket so it wouldn't get dirty or scratched and was completely surprised when she was accused of stealing it by the town watch.
Now, the amulet is in the town treasury, guarded by strong walls and the guardsmen themselves. The Knights find Moyra's father, Breddo, who reveals that he is the true thief, and that he buried the amulet in the garden. Kendric also knows of the amulet. It isn't a bird on it, but a Silver Dragon, and it has a history. A Silver Dragon made it to calm anyone who saw it, but the calmness is actually a minor hypnotic effect. This would explain Torin's change of personality on this point.
Of course, they can't let the amulet go to Lexos, so they must steal it and make a copy to give to Lexos. Then, they must return the actual Amulet to the Silver Dragon who made it.
They do manage to get the amulet, and Kendric makes a copy, intending to return it to Lexos in the morning. But Moyra knows her mother will be executed shortly, and that night, she takes the fake amulet to make Lexos go to the guard and withdraw his accusation against her mother. Kellach and Driskoll follow her and, unable to convince her to wait, follow along to keep her safe. Lexos agrees to withdraw the accusation in return for the amulet, but imprisons Moyra and Driskoll so that they won't cheat him. He puts them in a small chamber underneath the house and bars the door so that they won't get away, then goes off with Kellach to the Guard Headquarters.
Moyra and Driskoll are unable to escape on their own, but do manage it with the help of a strange creature named Gryphyll. They leave the house and find Kellach, who gave Lexos the fake amulet after he withdrew his charge against Moyra's mother, and return to Kendric, who tells them it is Kellach's duty to return the real amulet to the Silver Dragon who made it.
Although the Silver Dragons have hid themselves for many years now, it is also a duty for a Knight of the Silver Dragon to meet a Silver dragon as a test of their valor and determination. Telling their father that they will be staying with Kendric, the three Knights set off for a nearby mountain where the Silver Dragons once laired. They discover that they are being followed, but the follower is Gryphyll, who asks to come along with them. Moyra and Driskoll, owing the strange little being, convince Kellach to let him come along.
But they are also being followed by Lexos, who wants the real amulet back, having discovered the fake. Can the three Knights find the real Dragon in time, and fight off Lexos, who is both older and more powerful than they?
This was a solid adventure, with danger to Moyra's parents, and the risk of going against the town guardsmen as well as the evil and demented Lexos. Lexos has fought them before, so it's not just that the Knights have the real amulet and he wants it back, but that he wants revenge on them for past defeats. And he isn't going to be satisfied with just spanking their asses and making them cry, he wants to totally defeat them, make them acknowledge their defeat, and kill them.
Lexos definitely comes off as both evil and relentless, which is pretty scary, as he is definitely more powerful than the much younger Knights. While the story wasn't as interesting as the Dagger of Doom, it was still enjoyable and will bring delight to readers.